Question

Weaver Company’s predetermined overhead rate is $15.00 per direct labour-hour, and its direct labour wage rate is $10.00 per hour. The following information pertains to Job A-200:

Direct materials	$315
Direct labour	$210

Required:

1. What is the total manufacturing cost assigned to Job A-200?

2. If Job A-200 consists of 40 units, what is the average cost assigned to each unit included in the job?

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Question 1 of 2 Total

Answer 1

1.

Direct labor hours used in Job A-200= Direct labor cost/ Direct labor rate

= 210/10

= 21

Overhead applied = Direct labor used x Predetermined overhead rate

= 21 x 15

= $315

Job Cost Sheet ( Job A-200)

Direct material	315
Direct labor	210
Applied overhead	315
Total Cost	$840

2.

Cost per unit = Total cost/ Number of units

= 840/40

= $21

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